Pennsylvania Home Buyer

Bradford County First Time Home Buyer Program

Nice house with sold signDown payment and closing cost assistance is available to the residents of Susquehanna & Bradford Counties. The assistance program is offered through the Trehab Community Action Agency. Trehab serves six rural counties in Northeastern Pennsylvania. Trehab has offices in Tioga, Bradford, Susquehanna, Sullivan, Wyoming, and Wayne Counties. Easy online web-based computer course educates homebuyers in various aspects of the home purchase and homeownership. One-on-one counseling is available to assist the homebuyer with the purchase of their home.

The closing cost/down payment assistance grant is a forgivable loan. There is no repayment unless the home is sold within 5 years of settlement. Applicants must meet the household income limits and must be approved for a mortgage loan by a qualified mortgage lender.

For more information:
Phone: 570-278-5230
mdarrow@trehab.org


What are points on mortgage loan?

When you borrow money from a bank (or mortgage company), the lender charges you interest on the loan. The loan interest is the bank's profit. Each month you repay a portion of the loan with interest. Over the life of the loan you may actually pay the bank as much in interest as the original amount! One way to reduce the amount of interest paid to the bank is to pay or buy "points" on the loan. One point is 1% of the loan amount. For example, if you borrow $100,000 and pay one point (1%), you will pay $1,000 ($100,000 X 1% = $1,000). If you pay two points, you will pay the bank or mortgage lender 2% of the loan.

Points are pre-paid interest. If you are willing to pre-pay some of the interest when you take out the loan, the bank in turn will reduce the overall interest rate. Mathematically, points can actually reduce the total amount interest paid on the loan. A good amortization schedule can estimate whether points are beneficial. That is reason why you will interest rates advertised such as:
5.00% + 0
4.75% + 1 < one point
4.50% + 2 < two points

What’s a fixed rate mortgage?

Mortgage interest rates can be “fixed”, adjustable (sometimes-called variable) and hybrid. A hybrid mortgage is a combination of a fixed rate and adjustable rate.

The fixed rate mortgage means that the interest rate will not change. The interest rate will always remain the same for the life of the loan (i.e. 5, 10, 15, 20, 25, or 30 years). The adjustable rate mortgage on the other hand is subject to change. The interest rate can go up and increase your monthly payment, but the adjustable rate mortgage can also go down and reduce your mortgage payment every month. The hybrid interest rate (three one arm and five one arm) offer a fixed rate for either 3 or 5 years and then convert to a one year adjustable rate loan. The hybrid loan is a good choice for homebuyers who will only live in the home for a few years or will payoff the mortgage within the three or five-year period, because the initial (fixed) interest rate is usually lower for hybrid rate mortgage than loans that are fixed for life.

What are the lowest mortgage rates?

Animated checbeing signedEveryone wants the lowest interest rate, that’s understandable. But today’s “low rate may be “high” tomorrow. Mortgage interest rates go up and down daily, and depending on what’s going on around the world, hourly. You may actually get the lowest interest rate when you apply for your loan, but, then again, it is possible that tomorrow’s rate may be lower. That’s just how it is. No one can predict interest rates – no one. Shop for the best interest rate, apply for the loan and buy your house. And if the interest rates fall, just refinance your mortgage to a lower interest rate. See Today's interest rates











How much does it cost to buy a house in Pennsylvania?

Use the PA mortgage calculator to estimate the down payment, closing costs and monthly payment for FHA, VA, USDA & conventional loans.Closing cost calculator



Learn about Pennsylvania's home buying programs. Read more

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